Thursday 17 March 2011
Japan Crisis / Bahrain Crisis = stasis?
Yet this is at a time when Japan has shut its Nuclear facilities as has Germany. These countries are going to need a lot more gas and oil in the next few months. Longer term too, there will be increased pressure on fossil fuels with the review of Nuclear power globally.
This is all before we get to the Shia/Sunni stand-off in the Gulf. Iran and Saudi Arabia are now interfering in Bahrain which looks increasingly unstable. This region of the world is not Libya, it provides a significant percentage of the World's oil.
However, as of today, markets seem to view the downside of economic growth thanks to the Japan catastrophe as more than matching the troubles in MENA. I doubt this situation is going to last...hopefully Japan will get control of its nuclear issue (I keep saying this everyday and it keeps not happening sadly); but the result of this is going to be a big spike in oil prices.